Chinascope – Page 90

China’s Efforts to Silence Unfavorable Financial News

Le Monde, a French newspaper reported that China has been trying to hide any bad news about its financial data from the world. China’s central bank, People’s Bank of China, established a Chinese credit rating company, Dagong Global Credit Rating Co, Ltd in 1994, to “serve” both the domestic market and the world. In 2013, Dagong merged with Russia’s credit rating company RusRating and a small U.S. rating company Egan-Jones Ratings, to form Universal Credit Rating Group (UCRG) (世界信用評級集團). To build its reputation, UCRG hired former French Prime Minister de Villepin to chair its advisory board and former Australian Prime Minister Kevin Rudd to serve on its advisory board.

In 2010, UCRG was banned from practicing in the U.S. because it refused to comply with the transparency rules of the U.S. Security Exchange Commission (SEC). The European Securities and Markets Authority (ESMA), however, gave Dagong a green light in 2013. Part of the reason was that in the wake of the Greek debt crisis, the E.U. was happy to see a Chinese competitor enter the credit rating market which the British and American agencies dominated.

People soon saw that Dagong served as a strategic pawn for China to enter the European market. In 2018, Dagong was fined in China for corruption and collusion with the evaluated companies. In April 2019, the state power (the communist regime) directly took over the management of Dagong. The ESMA waited another seven months to exclude Dagong from the European market.

Beijing then adopted a new strategy. That is, to publish laws to control what information it feeds to the world. It introduced a data security and protection law in 2021, restricting the freedom of multinational companies to transfer information with their Chinese subsidiaries. It introduced and implemented cross-border data transfer regulations in 2022 to make it impossible for users to access Chinese corporate information databases, such as Tianyancha (天眼查), from abroad. Its new counter-espionage law, which will take effect on July 1, makes it possible to criminalize any exchange of information with foreigners and foreign organizations and companies.

Source: Radio France International, June 20, 2023
https://rfi.my/9dhS

Briefings | | June 30, 2023 | @CS Economy/Resources Government/Politics

Xinhua: Russia Opened Its First Institute to Study Xi Jinping Thought

Xinhua News Agency reported that Russia has established a research office in Moscow, specializing in the study of “Xi Jinping Thought on Socialism with Chinese Characteristics in the New Era.” The office’s name in Russian is “Research Office on Chinese Contemporary Ideology and Xi Jinping Thought.” It was set up by the Institute of China and Modern Asia Studies of the Russian Academy of Sciences. The office has 10 specialists now, from the Institute of China and Modern Asia Studies of the Russian Academy of Sciences, the Institute of World Economy and International Relations Studies of the Russian Academy of Sciences, and the Russian Higher Economic University.

The office’s research covers various fields, including politics, the economy, diplomacy, military, ecology, and culture. The first batch of its research results will be published in monograph form in 2025.

Source: Xinhua, June 21, 2023
https://app.xinhuanet.com/news/article.html?articleId=811fa66141e1672547fc744859d245ef

Briefings | | June 30, 2023 | Geo-Strategic Trend Government/Politics

Protest Signs against Authoritarianism Emerge at Peking University

During the Dragon Boat Festival at Peking University in China, a protester displayed slogans opposing the Chinese Communist Party’s (CCP’s) authoritarian regime. The individual, dressed in a tan robe, held up a sign near the cafeteria on campus calling for the abolition of the one-party dictatorship and the adoption of a multi-party system. The protester voluntarily included his social media account information on the sign, which pointed to YouTube and Twitter accounts registered in May 2023. The accounts identified the protester as Zhang Sheng, a self-described Chinese writer.

Pictures and posts on Twitter documented the incident, showing the protester being escorted away by the university’s security personnel. When questioned about the event, Peking University’s security department neither confirmed nor denied the incident.

This protest marked a resurgence of criticism against China’s political system and demands for multi-party rule at Peking University, where similar demonstrations had taken place during the 1989 Students Movement. Notably, this demonstration occurred in the same location where students had protested against the “zero COVID” policy in November of the previous year. It is important to highlight that the “zero COVID” policy was subsequently abolished ten days after university students, including those from Peking University and Tsinghua University, expressed their opposition to it by holding up white papers.

The recent protest at Peking University aimed to challenge the one-party rule and promote political reform through the establishment of a multi-party system. Despite attempts to ascertain the whereabouts of the detained student by contacting the university’s security department, that department neither confirmed nor denied the event. This incident serves as a reminder of the ongoing tensions between dissenting voices and the Chinese government’s control over political expression on university campuses.

Source: Radio Free Asia, June 22, 2023
https://www.rfa.org/mandarin/yataibaodao/renquanfazhi/gt-06222023233902.html

Briefings | | June 28, 2023 | Social Stability

Adapting to the Challenging Job Market: Chinese University Students Opt for Graduation Postponement

Chinese college students have manifested a growing trend of opting to delay their graduation in response to the country’s economic downturn and rising youth unemployment rates. These students are facing difficulties in finding jobs and are choosing to extend their education in order to enhance their employment prospects. While delaying graduation was previously stigmatized, the current job market conditions have made this decision more acceptable.

The reasons behind the decision to delay graduation include the challenging job search process, prompting students to engage in additional internships and bolster their resumes to become more competitive. Some students opt for a delay because they did not gain admission to graduate school and decided to pursue stable jobs before attempting to enter the system as fresh graduates. Others seek an extra year to accommodate time constraints or personal circumstances, utilizing this period to apply for doctoral programs.

The Taiwan based Central News Agency report highlights the case of a journalism graduate student named Xiao Le, who believes that delaying graduation was the right choice due to the demanding curriculum and the university’s internship requirements. Xiao Le encountered health issues and anxiety related to a previous internship, leading her to seek advice from mentors, senior students, and friends. They advised her to take an additional year to prioritize her well-being.

According to Xiao Le, many students in her class have also decided to delay graduation. Some aim to reapply as fresh graduates after being rejected by their desired companies, while others pursue internships in Internet companies to increase their chances of securing employment in the challenging job market.

Given the intense competition in the current Chinese job market, many students are engaging in extensive internships alongside their heavy academic workload. Students are realizing that pursuing higher education does not guarantee a smooth transition into the job market, resulting in increased exhaustion and stress.

Source: Central News Agency (Taiwan), June 21, 2023
https://www.cna.com.tw/news/acn/202306210359.aspx

Briefings | | June 28, 2023 | Economy/Resources

Italy Contemplates Exiting “Belt and Road Initiative” as CCP Dispatches Delegation amidst Coercive Communications

Italy, the only G7 country participating in China’s “Belt and Road Initiative,” is contemplating its withdrawal from the program. To persuade the Italian government to renew the agreement, a delegation led by Liu Jianchao, head of the International Department of the Chinese Communist Party, is reportedly being sent to Rome. The main objective of Liu’s visit is to engage in a dialogue with Italy’s center-right governing coalition, particularly with Prime Minister Giorgia Meloni, in order to secure the renewal of the “Belt and Road Initiative” agreement by the end of the year.

Italy joined the initiative in 2019 under former Prime Minister Giuseppe Conte, but its economic benefits were considered to be below expectations. The current memorandum of understanding for cooperation is set to expire at the end of this year, and, if it is not renewed, it will become invalid. On multiple occasions, the Meloni government has expressed its inclination to withdraw from the initiative .

The Chinese Ambassador to Italy, Jia Guide, warned that if the “Belt and Road Initiative” is not renewed by the end of the year, it will pose a significant obstacle to bilateral exchanges. China is planning to send an important delegation, including ministers responsible for propaganda and customs, to visit Italy in the near future. However, if Italy withdraws from the initiative, China has threatened to suspend such exchanges and visits.

China has also hinted at possible economic and trade consequences for Italy if it chooses to withdraw from the “Belt and Road Initiative.” The official Chinese media outlet, the Global Times, has conveyed coercive messages in this regard.

Source: Radio Free Asia, June 23, 2023
https://www.rfa.org/mandarin/Xinwen/4-06232023105817.html

Briefings | | June 27, 2023 | Geo-Strategic Trend

Lianhe Zaobao: U.S. Nuclear Aircraft Carrier to Make Rare Stop in Vietnam

Singapore’s primary Chinese language newspaper Lianhe Zaobao recently reported that the US aircraft carrier USS Ronald Reagan will dock in the central Vietnamese port city of Da Nang on June 25, for six days. The USS Ronald Reagan is the ninth ship of the Nimitz-class nuclear-powered aircraft carrier. While the situation in the South China Sea remains tense, it is very rare for a US warship to call at the port of this Southeast Asian country. The Ronald Reagan was the third US aircraft carrier to visit Vietnam after the Vietnam War. In 2020, to commemorate the 25th anniversary of the end of the Vietnam War, the fourth ship of the Nimitz-class nuclear-powered aircraft carrier, the USS Theodore Roosevelt, docked in Vietnam. China claims almost the entire South China Sea, which includes the exclusive economic zones of Vietnam and other countries in the region. The South China Sea is an important waterway for international routes. American aircraft carriers often pass through this resource-rich sea area and Chinese warships often track and monitor them. The Chinese aircraft carrier Shandong fleet sailed southwest of the Taiwan Strait only a few days ago.

Source: Lianhe Zaobao, June 23, 2023
https://www.zaobao.com.sg/realtime/world/story20230623-1407046

Briefings | | June 27, 2023 | Geo-Strategic Trend

EUCCC: European Companies’ Confidence in Doing Business in China Has Deteriorated

Major Taiwanese news network Liberty Times Network (LTN) recently reported that the European Union Chamber of Commerce in China (EUCCC) just released its latest survey. The survey showed that, in the face of growing risks and a more unstable business environment, European companies’ confidence in doing business in China has deteriorated. Companies have begun to review their investment and business strategies in China. According to the survey, 64 percent (a record high) of the respondents said that doing business in China has become more difficult in the past year, and 30 percent of the companies said that their revenue shrank compared with the same period last year. This ratio increased by 20 percentage points and reached the highest level in history. Around 75 percent of the companies have reviewed their supply chain strategy in the past two years, with 24 percent saying they plan to relocate some of their supply chains to China and 12 percent who have already moved some of their supply chains out of China. In addition, 10 percent of the respondents said that they have moved or plan to move their Asian headquarters or business unit headquarters out of China. The number of respondents who regard China as the top three investment destinations in the future has dropped by 13 percentage points compared with the same period last year. Surveys point to increased decoupling between headquarters and China operations, mainly to manage risk. Jens Eskelund, president of the EUCCC, said the negative trends seen from this year’s survey were worrying and reflected challenges posed by an uncertain policy environment in China and heightened geopolitical tensions.

Source: LTN, June 21, 2023
https://ec.ltn.com.tw/article/breakingnews/4340888

Briefings | | June 27, 2023 | Economy/Resources Geo-Strategic Trend

HK01: German Intelligence Agency Identified China as the Biggest Threat to Economic and Scientific Espionage

Popular Hong Kong new online media HK01 Network recently reported that, Germany just released the Report of the Federal Office for the Protection of the Constitution. Although Germany releases this report every year, this time it is extraordinary both in terms of the strength of its warnings and in measuring changes in Germany’s security environment within a year. German Interior Minister Nancy Faeser said at a press conference that Russia’s war on Ukraine is a turning point for Germany’s domestic security. However, the strongest warning in the Report is directed at China, which it calls Germany’s “greatest threat in terms of economic and scientific espionage.” Earlier, the German government released, for the first time, a comprehensive national security strategy aimed at expanding Germany’s efforts to counter new military, economic and geopolitical threats. The Report indicated that Germany was one of the most important targets for Chinese investment in Europe in 2022. Direct investment not only provides opportunities for China to close its innovation deficit and achieve technological leadership, but also opens the door to political influence, espionage, and sabotage. These activities could also jeopardize Germany’s competitiveness as an industrial and technological hub and undermine the legal system of a market economy. Ultimately, this threatens to lead to a loss of prosperity and thus jeopardize democracy, social cohesion and Germany’s independence. Chinese Premier Li Qiang was visiting Germany at the time the Report was published.

Source: HK01, June 21, 2023
https://tinyurl.com/5n92u5pm

Briefings | | June 26, 2023 | Geo-Strategic Trend

Wu Guoguang: Xi Jinping’s Reversal of the Course, Will China’s Transition be Peaceful or Marked with Bloodshed?

Cheng Xiaonong: U.S.-China Strategic Relations Have Crystallized

Xinhua Commentaries: “Exposing the Three Major Political Deficits of the U.S.”

The CCP’s Performing Arts Troupes in the U.S.